Wachovia downgrades A.G. Edwards to "market perform"

BrendanJanuary

NEW YORK (CBS.MW) -- Wachovia Securities downgraded A.G. Edwards
AGE, +2.63%
to "market perform" from "outperform" on valuation grounds and a recent decline in retail and mutual fund activity. Earnings growth of the St. Louis-based financial services company would be limited due to "softer commissions and weaker banking revenue stemming from a slow down in the closed end fund business" and a slowdown in retail brokerage activity over the past two months, wrote analyst Douglas Sipkin. Wachovia lowered its estimate of 2005 earnings to $2.78 from $3.02 and of 2006 earnings to $2.86 from $3.15. A.G. Edwards' target price is a range of $37 to $39. Shares of the company closed Thursday down 32 cents at $37.97.

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